TORONTO, ONTARIO, November 29, 2017 – Mangazeya Mining Ltd. (“Mangazeya” or the “Company”) (NEX: MGZ.H) announced the filing of its unaudited interim condensed financial statements (“Financial Statements”), management’s discussion and analysis – quarterly highlights (“QH”) for the third quarter and the nine months ended September 30, 2017. All figures are quoted in Canadian dollars unless otherwise indicated.

Highlights for the 9 months and Q3 2017 include:

Q3 2017

Q3 2016

Change

%

9m 2017

9m 2016

Change

%

Financial highlights

Revenue

18,978

21,509

(2,531)

(12%)

29,517

32,308

(2,791)

(9%)

Adjusted EBITDA

7,538

11,575

(4,037)

(35%)

6,219

15,255

(9,036)

(59%)

Average gold price, CAD

1,602

1,683

(81)

(5%)

1,668

1,657

11

1%

Cash balance

1,558

9,826

(8,268)

(84%)

1,558

9,826

(8,268)

(84%)

Cash flow from operating activities before changes in working capital

7,544

11,928

(4,384)

(37%)

6,224

16,411

(10,187)

(62%)

Cash flow from financing activities

(965)

760

(1,725)

(227%)

1.21

25,464

13,040

105%

Cash flow from investing activities

(10,865)

(11,368)

503

4%

(27,991)

(16,075)

(11,916)

(74%)

During 9m 2017 Mangazeya decreased production of gold by 11% from 21,245oz for 9m 2016 to 18,843oz for 9m 2017; the sale of gold decreased by 9% from 19,382oz in 9m 2016 to 17,600oz in 9m 2017. In Q3 2017 the production of gold was 10,486oz comparing to 13,135oz in the corresponding period of 2016, the sale of gold was 11,405oz in Q3 2017 comparing to 12,780oz in Q3 2016. All production came from Savkinskoye mine;

Revenues for the period made up $18,978k for Q3 2017 and $29,517k for 9m 2017 compared to 21,509k for Q3 2016 and 32,308k for 9m 2016. The average gold price in Q3 2017 decreased comparing with the average gold price for Q3 2016 from $1,683 to $1,602 per ounce or by 5%; and was $1,657 in 9m 2016 and $1,668 in 9m 2017 per ounce (US$ 1,255 per ounce in 9m 2016 to US $1,276 per ounce in 9m 2017);

Total cash cost (TCC1 ) in 9m 2017 increased by 22% compared to 9m 2016 as a result of growth in basic, supporting materials, fuel expenses included into cost of sales and currency rate fluctuation. TCC in Q3 2017 increased by 7% compared to Q3 2016;

The company reached positive adjusted EBITDA1 for the 9m 2017 in the amount of $6,219k comparing with positive adjusted EBITDA for the 9m 2016 in the amount of $15,255k. The adjusted EBITDA1 in Q3 2017 in the amount of $7,538k comparing with Q3 2016 in the amount of $11,575k;

Capital expenditures for 9m 2017 amounted to $27,263k compared with $15,536k in 9m 2016. The Company invested in PPE – $24,959k; in Mine properties – $212k; in Exploration and evaluation assets – $2,062k and IA – $30k. For the same period of 2016 the Company invested in PPE – $10,542k; in Mine properties – $1,099k; in Exploration and evaluation assets – $3,851k and IA – $44k.

Financial Results for the 9 months and Q3 2017

The Company reported operating income of 6,497k in Q3 2017 compared to income of $10,901k in Q3 2016. The decrease was mainly the result of decrease in sales volume by 11% and increase of total cash cost by 7%. For 9m 2017, the operating income amounted to $4,361k compared to operating income of $14,158k in 9m 2016. The operating loss was mainly the result of the decrease in sales volume by 9%, increase in total cash cost by 22% in 9m 2017.

Administrative expenses for 9m 2017 increased by 188% to $5,468k from $1,899 in 9m 2016 (in Q3 2017 increased by 177% to $1,662k from $601 in Q3 2016) due to changes in agreements of services as a result of the active construction and exploration works in Nasedkino and Zolinsko-Arkiinskaya areas.

In Q3 2017, the Company incurred finance expenses of $383k compared to $175k in Q3 2016 (the finance expenses decreased to $873k for 9m 2017 from $1,628k for 9m 2016) due to conversion of loans to equity in March 2016.

Cash received from operating activity before changes in working capital in Q3 2017 was $7,544k as compared to $11,928k in Q3 2016. Cash outflow from investing activities in Q3 2017 was $10,865k as compared to outflow of $11,368k in Q3 2016. Cash outflow from financing activities in Q3 2017 was $965k compared to cash received from financing activities of $760k in Q3 2016.

For the nine months 2017 year, the cash received from operating activity before changes in working capital was $6,224k as compared to cash inflow of $16,411k for the 9m 2016. The cash outflow from investing activities in the 9m 2017 was $27,991k as compared to outflow of $16,075k in the 9m 2016. The cash received from financing activities for the nine months 2017 was $25,464k compared to the cash received from financing activities of $12,424k during the 9m 2016.